Renowned asset management company Franklin Templeton has taken a major step into the cryptocurrency investment market with the debut of its Ethereum exchange-traded fund (ETF), the “Franklin Ethereum TR Ethereum ETF,” with the ticker code EZET.
The ETF, which is based on the well-known cryptocurrency Ethereum, is now available for purchase on the website of the Depository Trust and Clearing Corporation (DTCC), a crucial venue for US securities transactions. An important step in the ETF’s operational deployment has been reached as it may now be created and redeemed, as seen in the DTCC’s “Create/Redeem” column.
It’s crucial to remember that the DTCC platform listing does not imply endorsement by the Securities and Exchange Commission (SEC) of the United States. The ETF’s final clearance is pending the SEC’s careful examination in light of legal requirements.
Franklin’s Ethereum ETF Journey Begins
Franklin Templeton initiated the ETF process in February by filing a Form S-1 with the SEC to launch a spot Ether (ETH) ETF. This ETF would be traded under “Franklin Ethereum ETF” on the Chicago Board Options Exchange if approved.
However, recent occurrences indicate the SEC’s decision-making timeline is behind track. The decision date was moved up to June 11 after the SEC announced in April that the review process would be prolonged by an additional 45 days.
Prominent players in the cryptocurrency field, such as ARK Invest, VanEck, Grayscale, and BlackRock, are competing to get their Ethereum-based exchange-traded funds (ETFs) approved. Ethereum ETF from Franklin Templeton enters this battle.
The regulatory landscape for Ethereum-based ETFs differs from that of spot Bitcoin ETFs, which were approved in January. ETF researcher Eric Balchunas of Bloomberg estimated a 35 per cent chance that a spot Ether ETF will be approved in May. He emphasized that the SEC is now taking a more cautious approach compared to its earlier handling of Bitcoin ETF applications.
Balchunas also brought attention to Gary Gensler, the head of the SEC, and his possible feelings toward Ethereum. Gensler’s unwillingness to categorize Ethereum as a security may impact the final regulatory decision regarding Ethereum ETFs.
The future of Franklin Templeton’s Ethereum ETF and its competitors is still unknown because the SEC’s decision is imminent, and regulatory dynamics are changing. This illustrates the complex relationship between traditional banking and the emerging Bitcoin economy.
